Online Card Acquiring: How It Works for Merchants

What is web acquiring & how it works?

Online card acquiring is the service that enables a merchant to accept card payments on a website or in an app. The merchant needs an acquiring relationship, directly or through a provider that offers one, and a technical way to connect its checkout to the payment flow.

When a customer submits an online card payment, the payment request is sent through the gateway and acquiring path to the card network and the card issuer. The issuer returns an approval or decline decision through that path.

1. Payment request. The customer enters their card details or uses a supported wallet at checkout. The payment gateway sends the request through the merchant’s acquiring connection and card network to the issuer.
2. Authorisation. The issuer approves or declines the request based on the account and its checks. An approved authorisation is returned to the merchant through the same payment path.
3. Capture and settlement. An approval does not mean the merchant has received the funds. The transaction must be captured and submitted for clearing and settlement according to the payment setup. The acquirer then funds the merchant under the terms of their arrangement.

Nice and simple! This procedure is charmingly laconic and involves just a few counterparties:

• Customer (cardholder): Initiates the online payment.
• Merchant: Sells the goods or services and receives the payment result.
• Payment gateway: Connects the checkout to the relevant payment processing path and returns transaction responses.
• Acquirer: Provides the merchant’s acquiring relationship, submits transactions through the relevant card network and arranges merchant funding under the agreement.
• Card network: Routes the authorisation request and response between the acquiring and issuing sides.
• Issuer: Issued the customer’s card and approves or declines the authorisation request.

The merchant normally receives an authorisation response during checkout. Capture, clearing and settlement happen separately; the time until funds reach the merchant depends on the acquiring agreement, payment method and processing schedule.

Which Businesses Need Online Card Acquiring?

Online card acquiring is relevant to businesses that want to accept card payments on a website or in an app, including e-commerce stores, subscription services and digital platforms. A business selling only through a physical point of sale needs an in-person acceptance setup instead. Businesses that use several sales channels may need both.

Accepting orders through social media does not, by itself, create an online acquiring setup. The business still needs an appropriate payment flow, acquiring arrangement and checkout or payment link supported by its providers.

So, if your company doesn't have a website or at least an Instagram account through which your customers can request whatever you can offer — it’s right about time to do adopt the “going digital” strategy.

And even though cash money won’t become a historic atavism any time soon, as the Bank of England reports, customers will treat physical banknotes with caution.

Then, your business should provide every customer with as much convenience as possible. People prefer having just a small amount of cash in their pockets for random expenses. And serious payments are usually made with a card, as everyday practice shows.

And of course, you can't forget about the latest trends: businesses have to go digital. And it’s not just a fad artificially boosted by marketing gurus. It’s more of a matter of survival.

At the moment, about 70% of all American businesses prefer working via Instagram and other similar platforms like Facebook. There, they can advertise their brands, find clientele, use analytical and demographic tools, employ free promotion through hashtags, and so on.

And the reason for this eCommerce migration is people. People seem to enjoy virtual shopping more and more, especially now when another lockdown can break out any moment.

So, if your company doesn't have a website or at least an Instagram account through which your customers can request whatever you can offer — it’s right about time to do adopt the “going digital” strategy.

What Do You Need to Start Accepting Cards Online?

First, confirm which entity will provide the acquiring relationship and which card brands, countries, currencies and business activities it will support. Then choose a checkout and gateway integration that works with that arrangement.

Compare the full commercial terms, including transaction fees, chargeback fees, settlement schedule and any reserves or volume limits. The lowest headline rate may not be the best fit if the provider cannot support your markets or transaction profile.

Payneteasy provides payment gateway and orchestration technology, including provider integrations, routing, risk controls and transaction reporting. It does not act as the merchant’s acquirer or provide a merchant account; acquiring approval and settlement arrangements remain with the relevant providers.

The integration approach depends on the checkout experience and technical requirements. A hosted payment page can reduce the amount of payment-form development; an embedded form or API-based integration may provide more control but requires additional implementation and testing. Before launch, verify the acquiring approval, supported payment methods, authorisation and decline flows, refunds, reporting and the responsibilities attached to the chosen card-data flow.

How to find a reliable acquiring provider?

But before you invest in a such a provider, here are some of the features they should typically offer:

• Acquiring fit: supported business model, merchant categories, countries, card brands and currencies.
• Commercial terms: transaction and dispute fees, settlement timing, reserves and volume limits.
• Checkout integration: available payment forms or APIs, documentation, testing tools and support.
• Security and responsibilities: card-data flow, the provider’s PCI DSS documentation and the merchant’s remaining obligations.
• Operations: reporting, refunds, reconciliation, fraud controls and incident support.
• Additional provider connections: routing and fallback capabilities if the business needs more than one acquiring path.

And many other services.

If you already have an acquiring relationship or are evaluating providers, Payneteasy can help you connect the relevant payment paths through its gateway and orchestration technology. Discuss your markets, expected volumes and checkout requirements with the team to determine the appropriate integration and operational setup.